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Sep 2014 Statistics

Commentary: September quarter 2014

Read more about personal insolvency activity in the September quarter 2014.

Personal insolvency activity in the September quarter 2014

Quarterly personal insolvency activity in Australia

Key points

Bankruptcies fell 11.6% percent in the September quarter 2014 compared to the September quarter 2013. There were falls in all states and territories except the Northern Territory and South Australia.

Debt agreements in the September quarter 2014 are the highest number on record in a quarter. The previous record for a quarter was in the June quarter 2014.

Debt agreements in the Australian Capital Territory, Northern Territory and Western Australia in the September quarter 2014 are the highest number on record in a quarter.

Personal insolvency agreements increased 20.0% in the September quarter 2014 compared to the September quarter 2013. This is the first rise compared to the same quarter in the previous year since the March quarter 2012.

The rise in debt agreements and personal insolvency agreements did not offset the fall in bankruptcies. As a result, total personal insolvency activity fell 0.2% in the September quarter 2014 compared to the September quarter 2013.

New South Wales was the main contributor to the national fall in total personal insolvency. The number of debtors in New South Wales fell by 147 debtors in the September quarter 2014 compared to the September quarter 2013. The number of debtors fell by 16 debtors over the same period nationally.

Total personal insolvency activity

Total personal insolvency activity fell 0.2% in the September quarter 2014 (7 466) compared to the September quarter 2013 (7 482) and increased 8.5% compared to the June quarter 2014 (6 884).

The fall in total personal insolvency activity in the September quarter 2014 compared to the September quarter 2013 was the result of falls in total personal insolvency activity in:

New South Wales (-5.8%)

Queensland (-0.3%)

South Australia (-0.9%).

These falls were partly offset by increases in:

Victoria (3.4%)

Western Australia (6.0%)

Northern Territory (63.2%)

Australian Capital Territory (26.7%)

Tasmania (3.5%).

The 0.2% fall in total personal insolvency activity in the September quarter 2014 compared to the September quarter 2013 follows a 9.0% fall in the June quarter 2014 compared to the June quarter 2013.

Total personal insolvency activity in Australia: % change compared to same quarter in previous year

Bankruptcies

The number of bankruptcies fell 11.6% in the September quarter 2014 (4 390) compared to the September quarter 2013 (4 968) and increased 13.8% compared to the June quarter 2014 (3 857).

The decrease in bankruptcies in the September quarter 2014 compared to the September quarter 2013 was the result of falls in the number of bankruptcies in:

New South Wales (-14.3%)

Queensland (-11.3%)

Victoria (-12.5%)

Western Australia (-15.1%)

Australian Capital Territory (-13.3%)

Tasmania (-2.3%).

These falls were partly offset by increases in:

Northern Territory (72.2%)

South Australia (0.3%).

The 11.6% fall in bankruptcies in the September quarter 2014 compared to the September quarter 2013 follows a fall of 25.1% in the June quarter 2014 compared to the June quarter 2013.

Bankruptcies in Australia: % change compared to same quarter in previous year

Debt agreements

The number of debt agreements in the September quarter 2014 is the highest number on record in a quarter, following the previous record in the June quarter 2014. The number of debt agreements increased 22.4% in the September quarter 2014 (3 010) compared to the September quarter 2013 (2 459) and rose 1.0% compared to the June quarter 2014 (2 979).

The increase in debt agreements in the September quarter 2014 compared to the September quarter 2013 was the result of increases in the number of debt agreements in:

Victoria (39.4%)

Queensland (22.3%)

Western Australia (45.5%)

New South Wales (10.0%)

Australian Capital Territory (70.7%)

Northern Territory (50.0%)

Tasmania (14.9%)

These increases were partly offset by a fall in South Australia (-4.3%).

The 22.4% rise in debt agreements in the September quarter 2014 compared to the September quarter 2013 follows a rise of 27.1% in the June quarter 2014 compared to the June quarter 2013.

Debt agreements in Australia: % change compared to same quarter in previous year

Personal insolvency agreements

Personal insolvency agreement activity shows higher volatility than bankruptcies and debt agreements due to the smaller numbers recorded each quarter. Personal insolvency agreements comprised 0.9% of total personal insolvency activity in the September quarter 2014.

The number of personal insolvency agreements increased 20.0% in the September quarter 2014 (66) compared to the September quarter 2013 (55) and increased 37.5% compared to the June quarter 2014 (48).

The increase in personal insolvency agreements in the September quarter 2014 compared to the September quarter 2013 was the result of increases in the number of personal insolvency agreements in:

New South Wales (37.5%)

Queensland (21.4%)

Victoria (6.3%)

South Australia (100.0%)

Northern Territory (one debt agreement, an increase from zero in the June quarter 2014).

These increases were partly offset by a fall in Western Australia (-12.5%). There was no change in the Australian Capital Territory and Tasmania.

The 20.0% rise in personal insolvency agreements in the September quarter 2014 compared to the September quarter 2013 follows a fall of 33.3% in personal insolvency agreements in the June quarter 2014 compared to the June quarter 2013.

Personal insolvency agreements in Australia: % change compared to same quarter in previous year